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15 handpicked stocks

The Coffee Shake-Up: A Consolidation Play

Coca-Cola is exploring a sale of its Costa Coffee chain, a move that could spark a wave of mergers and acquisitions. This theme focuses on companies poised to benefit from the strategic reshuffling in the global coffee industry.

Author avatar

Han Tan | Market Analyst

Published on August 25

Your Basket's Financial Footprint

Market cap breakdown for the basket 'The Coffee Shake-Up: A Consolidation Play'

Key Takeaways for Investors:
  • Large-cap dominance generally means lower volatility and returns that tend to track broad market movements, not spikes.
  • Best used as a core holding for diversified portfolios, not a speculative, high-growth allocation.
  • Expect steady, long-term value appreciation rather than short-term explosive gains; growth likely moderate and gradual.
Total Market Cap
  • KO: $306.39B

  • SBUX: $97.64B

  • KDP: $37.59B

  • Other

About This Group of Stocks

1

Our Expert Thinking

Coca-Cola's potential sale of Costa Coffee could trigger a wave of mergers and acquisitions across the global coffee industry. This strategic reshuffling creates opportunities for companies positioned to benefit from heightened M&A activity, whether as potential buyers, attractive takeover targets, or key industry partners.

2

What You Need to Know

This group spans the entire coffee value chain, from major beverage corporations to specialised coffee retailers and their suppliers. These companies operate across sourcing, roasting, distribution, and consumer-facing operations, making them well-positioned to capitalise on industry consolidation dynamics.

3

Why These Stocks

These stocks were handpicked by professional analysts based on their potential to benefit from the shifting competitive landscape in coffee. They represent tactical, event-driven opportunities that could unlock shareholder value through premium acquisition prices or enhanced market positioning.

Why You'll Want to Watch These Stocks

M&A Momentum Building

Costa Coffee's potential sale could spark a domino effect of acquisitions across the coffee industry. Companies in this space may become prime takeover targets or strategic buyers.

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Premium Valuations Ahead

Industry consolidation often drives up valuations as companies compete for market share and strategic assets. Early positioning could capture significant upside potential.

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Strategic Reshuffling Underway

Major players are re-evaluating their coffee strategies, creating opportunities for well-positioned companies to gain market share or become attractive acquisition candidates.

Get the full story on this Basket. Read our detailed article on its risks and potential.

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